Figma Stock Plunges 16% Despite Record Growth as AI Costs Alarm Investors

Figma lifts annual revenue forecast as AI efforts drive solid demand

Aug 5 (Reuters) - Figma (FIG.N), opens new tab lifted its annual revenue forecast on Wednesday, encouraged by strong demand for its design software products, as the company's efforts to integrate AI in its tools helped attract and retain more users. Shares of the company, however, fell 10% in extended trading after it kept its annual profit forecast intact, fueling fears over its AI investments denting profit margins. Known for its browser-based platform that allows design teams to collaborate in real ⁠time, Figma has leaned in hard on artificial intelligence, embedding the technology across its portfolio to draw in more users by making its tools more accessible and easier to use. Earlier this year, the company launched an AI agent directly built into the Figma canvas that can execute a variety of tasks such as making edits on large files, altering layouts and executing multi-step workflows. Figma's AI efforts are paying off, with customers increasingly adopting ⁠its AI tools for tasks ranging from sketching and brainstorming to coding and shipping products. Figma now expects full-year revenue between $1.463 billion and $1.467 billion, the midpoint of which implies a 39% growth rate, up from its prior forecast for 35% ⁠growth and ahead of analysts' estimates for a 36.1% increase, according to data compiled by LSEG. "We are seeing real traction on AI monetization ... This starts to show ⁠up in our dollar retention rate, in our gross profit dollars, and it's all because Figma is offering something unique," Figma CFO Praveer ⁠Melwani told Reuters. The company reported revenue of $370.1 million for the second quarter ended June 30, up 48% from a year earlier, beating estimates of $351.6 million. Reporting by Deborah Sophia in Bengaluru; Editing by Diti Pujara Our Standards: The Thomson Reuters Trust Principles., opens new tab

Figma beat forecasts, but AI costs sent the stock down 16%

Figma beat forecasts, raised its full-year outlook, and posted its fastest revenue growth yet. The stock still fell about 16%, because investors decided the bill for all that AI was the real story. Figma did almost everything a young public company is asked to do. Revenue rose 48% to $370.1m, beating estimates, its third straight quarter of speeding growth. It raised its full-year forecast. The stock fell about 16% after hours anyway. The reason sits a few lines down the income statement. Building and running AI is expensive, and Figma's spending has caught up with its selling. Research and development more than doubled to $167.3m. Total operating expenses nearly doubled to $426.9m. On a GAAP basis, the company swung to a $117.3m operating loss, Reuters reported. The AI bill comes due This was Figma's first full quarter selling AI by the credit, and demand looked real. Net dollar retention held at 136%. More than 80% of its biggest customers now use AI credits every week. Over half already lean on the Figma agent it unveiled in June. The trouble is that those features cost a fortune to build and to run. Adjusted operating margin fell to 10% from 16% in a single quarter. Figma also kept its full-year profit outlook flat while lifting the revenue line. In effect, every extra dollar of sales is being fed straight back into the product. Markets read a flat profit forecast beside a rising sales forecast as a warning. Chief financial officer Praveer Melwani framed it as a choice. "We want to make sure that we're really investing on the new product side to ensure we can create durable modes of growth over the long term," he told Reuters. The cost of that investment is the part investors fixed on. Growth is slowing, and so is the story Figma's own guidance points to a cooldown. It expects third-quarter revenue to grow about 36%, down from 48%. Fast growth that is visibly decelerating tends to spook a stock priced for more. Shares are now down roughly a quarter this year, a sharp turn from the rebound its first-quarter report set off. The timing of two departures did not help. On the earnings call, chief executive Dylan Field said chief marketing officer Sheila Vashee and chief product officer Yuhki Yamashita were both leaving, The Information reported. Losing a product chief in the quarter you bet the company on new products is awkward. A warning the sector heard The sell-off did not stop at Figma. Shares of Salesforce, ServiceNow, Intuit and Adobe slipped too, as investors took the results as a fresh sign that AI is squeezing software margins across the board. The market has grown quick to punish any hint of AI overspending. There is a twist that may reassure it in time. Melwani said Figma is now "hiring fewer people than we originally had planned," because AI tools let its staff do more, he told Fast Company. That is the promise under the cost: spend heavily on AI now, run leaner later. For one quarter at least, investors chose to look at the spending, not the promise.

Figma Q2 2026 earnings beat but stock falls on AI costs

Figma stock dropped 16.52% in after-hours trading. The decline arrived even though Figma cleared both the top and bottom lines: adjusted earnings per share of $0.08 topped Wall Street's $0.04 estimate, according to MarketWatch, which also put the analyst revenue consensus at $352 million. The results masked a significant increase in operating costs. GAAP operating expenses totaled $426.9 million in the quarter, up from $219.7 million a year earlier, producing a GAAP operating loss of $117.3 million, compared with operating income of $2.1 million in the same period of 2025. Stock-based compensation alone reached $147.6 million in the quarter. On a non-GAAP basis, which strips out stock compensation and other items, operating income was $36.1 million, representing a 10% non-GAAP operating margin.